v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of Net Loss Before Income Tax Provision

The table below summarizes the Company’s net loss before income tax provision for the years ended December 31, 2025 and 2024 (in thousands):

 

 

2025

 

 

2024

 

Domestic

 

$

(22,386

)

 

$

(12,978

)

Foreign

 

 

—

 

 

 

—

 

Net loss before provision for income taxes

 

$

(22,386

)

 

$

(12,978

)
Reconciliation of Income Tax Benefit At U.S. Federal Statutory Rate to Provision for Income Taxes

In accordance with the updated disclosure requirements of ASU 2023-09 for the year ended December 31, 2025, the reconciliation of the income tax benefit at the U.S. federal statutory rate to the provision for income taxes is as follows (in thousands):

 

 

 

$

 

 

%

 

Pre-tax book income - worldwide:

 

$

(22,386

)

 

 

 

Tax at statutory rate:

 

 

(4,730

)

 

 

21.0

%

State and local income taxes, net of federal income tax effect:(1)

 

 

(35

)

 

 

0.2

%

Foreign tax effects

 

 

—

 

 

 

—

 

Effect of cross border tax laws

 

 

—

 

 

 

—

 

Tax Credits:

 

 

 

 

 

 

   R&D Credits

 

 

(360

)

 

 

1.6

%

Change in valuation allowance:

 

 

3,133

 

 

 

(13.9

)%

Nontaxable or nondeductible items:

 

 

 

 

 

 

   Permanent differences

 

 

121

 

 

 

(0.5

)%

   Stock-based compensation

 

 

290

 

 

 

(1.3

)%

   Warrants

 

 

1,398

 

 

 

(6.2

)%

Other:

 

 

 

 

 

 

   Other

 

 

59

 

 

 

(0.3

)%

Changes in unrecognized tax benefits:

 

 

 

 

 

 

   FIN48

 

 

124

 

 

 

(0.6

)%

 

 

$

-

 

 

 

0.0

%
(1)
Texas state taxes comprised the majority (greater than 50 percent) of the tax effect in this category.

 

As previously disclosed for the year ended December 31, 2024 and prior to the adoption of ASU 2023-09, the reconciliation of income tax benefit at the U.S. federal statutory rate to the provision for income taxes is as follows:

 

 

 

 

2024

 

Income tax benefit at federal statutory rate

 

 

(21.0

)%

Change in valuation allowance

 

 

23.8

%

Income tax benefit at state statutory rate

 

 

(0.3

)%

Share-based compensation

 

 

0.9

%

Warrants

 

 

(2.6

)%

NOLs expiring and adjustments to NOL

 

 

(0.1

)%

Research credit

 

 

(0.7

)%

 

 

 

0.0

%
Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and deferred tax liabilities as of December 31, 2025 and 2024 are as follows (in thousands):

 

 

 

2025

 

 

2024

 

Deferred tax assets:

 

 

 

 

 

 

Accrued expenses

 

$

302

 

 

$

249

 

Share-based compensation

 

 

106

 

 

 

94

 

Net operating loss carryforwards

 

 

19,275

 

 

 

15,412

 

Income tax credit carryforwards

 

 

2,108

 

 

 

1,725

 

Property and equipment, net

 

 

206

 

 

 

218

 

Intangible assets

 

 

853

 

 

 

730

 

Capitalized R&D

 

 

2,862

 

 

 

3,949

 

Other, net

 

 

213

 

 

 

213

 

Total deferred tax assets

 

 

25,925

 

 

 

22,590

 

Valuation allowance

 

 

(25,910

)

 

 

(22,575

)

Total deferred tax assets, net of allowance

 

 

15

 

 

 

15

 

Deferred tax liabilities:

 

 

 

 

 

 

Other

 

 

(15

)

 

 

(15

)

Total deferred tax liability

 

 

(15

)

 

 

(15

)

Net deferred tax assets (liability)

 

$

—

 

 

$

—

 

 
Unrecognized Tax Benefits Activity

Following is a tabular reconciliation of the unrecognized tax benefits activity during the years ended December 31, 2025 and 2024 (in thousands):

 

 

 

 

2025

 

 

 

2024

 

Unrecognized Tax Benefits – Beginning

 

$

424

 

 

$

408

 

Gross increases – tax positions in prior period

 

 

5

 

 

 

—

 

Gross decreases – tax positions in prior period

 

 

—

 

 

 

(5

)

Gross increase – current-period tax positions

 

 

128

 

 

 

21

 

Unrecognized Tax Benefits – Ending

 

$

557

 

 

$

424